Union Bank becomes India's fourth state-run lender with a ₹1 lakh crore market cap

In a recent analyst meet, Union Bank's management maintained its guidance for financial year 2024. The management expects the bank to clock credit growth between 10% to 12% for financial year 2024, with gross and net NPAs expected to be below 5% and 1% respectively.

Analysts believe public sector banks are in a better position to manage their Net Interest Margins, given their excess liquidity with lower credit-deposit and liquidity coverage ratios. In fact, starting 2021, PSU Banks have been outperforming their private peers.

While the Nifty Bank has rallied between 12% and 20% over the last three years, the PSU Bank index has gained between 30% and 70%.

Shares of Union Bank of India have rallied as much as 66% in the last six months, beating both Nifty Bank index and Nifty PSU Bank Index. While the Nifty PSU Bank Index has gained 35% over the last six months, the benchmark Nifty50 and Nifty Bank Index have generated returns of 13% and 7%, respectively during the same period.

Union Bank's shares have rallied as much as 66% over the last six months, outperforming both the Nifty Bank and the PSU Bank index. While the PSU Bank index is up 35% over the last six months, the Nifty 50 and the Nifty Bank have gained 13% and 7% respectively over the same timeframe.